China Southern Airlines
Team 4: Tim Haberkorn Lawrence Brown Marta Merchut Joycelyn Parker
INDUSTRY ANALYSIS/MARKET STRUCTURE
Southwest Airlines which is the most profitable airline in America and China Southern Airways which is the biggest airline in the People Republic of China are two of the companies today that set the airline industry standards. Southwest Airlines is a company that leads by example for all other airlines. Since its arrival into the airline industry in 1971 it has been setting examples for all other airlines. Southwest in 1971 entered the market with one goal in mind and that was to change the industry and be the best at it. Southwest Airlines is the first in the industry to offer low cost commercial airline service through out the United States. When other airlines were busy adding on higher fares and offering elaborate services and meals Southwest was lowering their fares which in turn helped them stake their claim in the airline industry. Recently, Southwest upped their stake in the US airline industry by merging with ATA which is currently in Chapter 11. Southwest teamed up with ATA to take over most of the gates at Chicago Midway so they could expand their service even more out of Chicago which is one of its biggest hubs. They also started a code sharing plan with ATA which allows people to fly to cities that Southwest didn’t currently serve. For example people can know fly to popular Mexico, and Caribbean destinations by flying Southwest to Chicago and then they transfer to ATA on a Southwest ticket which allows them travel on. A city in which I thought could benefit Southwest the most out of the code sharing process is Denver via ATA out of Chicago. This is one of the major cities that Southwest didn’t already serve. Southwest has set their self’s in a position to lead the US airline industry for the next couple of years.
China Southern airlines...